Vicat SA
F:4HM
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Vicat SA
F:4HM
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FR |
Vicat SA
Vicat SA makes cement, concrete, aggregates, and other building materials used in roads, bridges, homes, and large infrastructure projects. It also makes related industrial products such as lime and special binders for construction and environmental uses. The company sits at the heavy end of the construction supply chain, turning raw minerals into materials that builders and contractors need on site. Its main customers are construction companies, ready-mix concrete producers, public works contractors, and industrial buyers that use mineral-based products in manufacturing or treatment processes. Vicat sells through a mix of direct contracts, local distribution channels, and project-based supply arrangements. It earns money by manufacturing these materials and selling them into regional construction markets where delivery reliability, product consistency, and logistics matter. What makes Vicat’s business different is that it is tied to local plants, quarries, and transport routes, so it is hard to run purely from a distance like a software business. Cement and concrete are bulky, low-margin products that usually must be produced close to the customer, which gives established producers a strong local role. Vicat’s business is therefore a steady industrial one: it is not selling a brand of finished goods to consumers, but the core materials that make construction projects possible.
Vicat SA makes cement, concrete, aggregates, and other building materials used in roads, bridges, homes, and large infrastructure projects. It also makes related industrial products such as lime and special binders for construction and environmental uses. The company sits at the heavy end of the construction supply chain, turning raw minerals into materials that builders and contractors need on site.
Its main customers are construction companies, ready-mix concrete producers, public works contractors, and industrial buyers that use mineral-based products in manufacturing or treatment processes. Vicat sells through a mix of direct contracts, local distribution channels, and project-based supply arrangements. It earns money by manufacturing these materials and selling them into regional construction markets where delivery reliability, product consistency, and logistics matter.
What makes Vicat’s business different is that it is tied to local plants, quarries, and transport routes, so it is hard to run purely from a distance like a software business. Cement and concrete are bulky, low-margin products that usually must be produced close to the customer, which gives established producers a strong local role. Vicat’s business is therefore a steady industrial one: it is not selling a brand of finished goods to consumers, but the core materials that make construction projects possible.
Record EBITDA: Vicat achieved its best ever EBITDA of EUR 783 million in 2024, with organic growth of over 10% and margin back above 20%.
Cash Generation: Free cash flow surged to EUR 373 million, up 26% year-on-year, resulting in a strong conversion rate and free cash flow yield of almost 20%.
Debt Reduction: The leverage ratio dropped to 1.58x at year-end, with a target to reach 1.3x by end-2025 and below 1x by 2027.
Market Performance: Strong growth in the US and recovery in Egypt offset a historic downturn in France and pressure in India.
Climate Progress: Continued reduction in CO2 emissions intensity and increased use of alternative fuels, with a substitution rate now at 36% aiming for 50% by 2030.
2025 Outlook: Targets for low single-digit EBITDA growth, net capex of EUR 280 million, further debt reduction, and maintaining at least a 20% EBITDA margin.
Dividend: A dividend of EUR 2 per share proposed, equivalent to a 5% yield.
